Elliott's Tumblr Times

Lt rail stopped 32nd St./Wash Cops. Fire around train. Traffic diverted.

Light rail trouble W of 38th. Train stopped, lots of cops. Don’t know if it’s accident.

Light rail back up WB @ 22nd St.

Accident has light rail stopped WB @ 22nd. Just cars involved, no train.

Against my better judgment, I try analyzing the MSM’s challenges for HSJ teachers attending an ASNE institute. Gulp. http://bit.ly/n72SK

Yikes. Anyone else’s jaw drop at Ann Curry’s touchy-feely Brad Pitt interview? Video: http://bit.ly/kYLvR. NY Daily News’ take: http://bit.ly/Z6UKe. My favorite Curry response, other than giggling: “Cool. Very cool.” Favorite question: What do you say to women back in the U.S. who are jealous of me right now? Pitts’ response: “Really. Thank you. Let’s move on.”

Ruling in Tucson Citizen case

U.S. District Judge Raner C. Collins on Tuesday rejected the Arizona attorney general’s request for a temporary restraining order that would force Gannett Co. Inc. to resume publishing the Tucson Citizen. Here’s the ruling: http://bit.ly/C2slu.

The judge said the AG’s office failed to show that it stood a good chance of prevailing in its anti-trust complaint.

“While regrettable that the Citizen’s illustrious legacy must come to end, it cannot be said at this time, the decision to close the Citizen involves an anti-trust violation,” the order read (I kept the ruling’s unfortunate comma use).

The ruling didn’t involve deciding the “failing company” test vital to the defense’s case, but Collins said he thinks the Citizen qualifies as a failing company (that is, it couldn’t survive outside of the JOA). Can’t help but think this is a nudge to the AG to walk away, as the failing company issue is so vital. The AG contended the Citizen couldn’t qualify as a failing company if someone was willing to buy it.

The judge also said the evidence at this time doesn’t show a buyer ready and willing to pay a fair and reasonable price for the Citizen’s assets, which mostly included its name, URL, subscriber list. This rejects claims of bad faith from a firm that said it offered $250k immediately and $400k over time for the assets.

Gannett said the Citizen’s assets were worth $760k.

More than 60 Citizen staff members were laid off last week and the outlet ceased publication after Gannett said it wasn’t able to sell its assets and after the U.S. Department of Justice said it had closed a review without finding anything awry.

The head of the AG’s anti-trust division told The Associated Press that her office would decide later whether to press the case.

TucsonCitizen.com lives on with two staffers as a site devoted to commentary, and a Citizen editorial will run weekly in the Arizona Daily Star, the Citizen’s partner in Tucson Newspapers Inc. The Joint Operating Agreement creating TNI was to run through 2015, and Gannett and Lee Enterprises, the Star’s owner, have agreed to split profits or losses from TNI post-JOA.

Here’s coverage for the background: AZ Daily Star: http://bit.ly/UqEwp; AP: http://bit.ly/GsomC; E&P: http://bit.ly/HeflC; Tucson Citizen: http://bit.ly/qtvuE.

Here are the case documents:

• The Ruling: http://bit.ly/C2slu
• The Complaint: http://is.gd/AvYT
• Memo Supporting TRO Request: http://is.gd/AvZC
• Motion for TRO: http://is.gd/Aw0k
• News Release http://is.gd/Aw0U
• AG’s Exhibit A: memo provided to potential buyers on assets, staffing, competition, etc.
• AG’s Exhibit B: original JOA agreement. Not much interesting here.
• AG’s Exhibits C-F: includes depositions in anti-trust investigation and TNI operating statements. Daniel S. Ehrman Jr., Gannett VP planning & development, says Carl G. Schmidt, Lee’s VP and CFO, suggested closing Citizen in May or June 2008. Also, parties discussed one partner acquiring greater ownership stake in TNI but nothing came of it. Schmidt says Gannett wasn’t interested in buying Lee’s share of TNI.
• AG’s Exhibits G-L: post-JOA agreement letter, rejected buyer’s affidavit.
• Defense Response on TRO: Argues among other things that Citizen was failing, government shouldn’t be able to force a newspaper to publish, public interest isn’t served by watching a company bleed to death.
• Defense Exhibits: including statements from TNI, Gannett, Lee execs, advertisers, defense experts including Harvard professor.
• AG Follow-up Exhibit A: Buyer explains how it offered evidence of ability to pay. Includes e-mail exchange with Gannett exec leading to end of negotiations.
• AG Follow-up Exhibit B: Documents on Honolulu Star-Bulletin sale — similar case.

Defense response to AG’s TRO motion in Tucson Citizen case. http://bit.ly/13XiCi. Legal arguments behind what was said in court Monday.

Some points it raises:

• No antitrust violation because no economic competition within JOA.
• TNI competes with all manner of media in Tucson market.
• Citizen was failing, thus no competition eliminated.
• AG doesn’t prove public interest would be irreparably harmed if no injunction issued.
• Balance of hardships clearly in defendants’ favor.
• Public interest favors defendants. Quote: “The public has no interest in watching a company bleed to death.”
• Court can’t order defendants to publish newspaper. Quote: “Forcing speech is the same as restricting speech.”